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by y1426i 404 days ago
If I sell an apple for one gold coin, that gold coin will probably fetch me two apples in the future. Which happens for a resource whose need is growing while supply is limited. This also means my gold appreciated without me generating any value over time. It creates an incentive to save and not spend.

Therein lies the problem with gold, which is why a decoupled currency was required. A natural resource such as gold or bitcoin, appreciates as the economy grows, which in turn slows the economy down. With a printable currency, a country can control inflation or depreciate past value to create agony for people who have to continuously work to create more value. That is what forces nation-building and what capitalism helps with.

Dollar worked. And it won't be replaced with a fixed resource such as gold or bitcoins. But as the article mentions, it may not remain unique. That will be very interesting though, since the world has never experienced those dynamics before.